Correlation Between Hawaiian Electric and Calvert Developed
Can any of the company-specific risk be diversified away by investing in both Hawaiian Electric and Calvert Developed at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hawaiian Electric and Calvert Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawaiian Electric Industries and Calvert Developed Market, you can compare the effects of market volatilities on Hawaiian Electric and Calvert Developed and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hawaiian Electric with a short position of Calvert Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawaiian Electric and Calvert Developed.
Diversification Opportunities for Hawaiian Electric and Calvert Developed
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hawaiian and Calvert is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Electric Industries and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market and Hawaiian Electric is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hawaiian Electric Industries are associated (or correlated) with Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of Hawaiian Electric i.e., Hawaiian Electric and Calvert Developed go up and down completely randomly.
Pair Corralation between Hawaiian Electric and Calvert Developed
Allowing for the 90-day total investment horizon Hawaiian Electric Industries is expected to generate 2.29 times more return on investment than Calvert Developed. However, Hawaiian Electric is 2.29 times more volatile than Calvert Developed Market. It trades about 0.47 of its potential returns per unit of risk. Calvert Developed Market is currently generating about 0.21 per unit of risk. If you would invest 1,083 in Hawaiian Electric Industries on May 31, 2025 and sell it today you would earn a total of 213.00 from holding Hawaiian Electric Industries or generate 19.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hawaiian Electric Industries vs. Calvert Developed Market
Performance |
| Timeline |
| Hawaiian Electric |
| Calvert Developed Market |
Hawaiian Electric and Calvert Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hawaiian Electric and Calvert Developed
The main advantage of trading using opposite Hawaiian Electric and Calvert Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawaiian Electric position performs unexpectedly, Calvert Developed can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calvert Developed will offset losses from the drop in Calvert Developed's long position.| Hawaiian Electric vs. CMS Energy | Hawaiian Electric vs. Alliant Energy Corp | Hawaiian Electric vs. IDACORP | Hawaiian Electric vs. Pinnacle West Capital |
| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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